Many Business Leaders Do Not Recognize the Growing Importance of IT

question 71

True/False

Many business leaders do not recognize the growing importance of IT as a fundamental driver of business and have concerns about IT's cost effectiveness and the value it adds.

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Definitions:

Conversion Costs

These are the combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Equivalent Units

A concept used in cost accounting to express the amount of work done on unfinished goods in terms of completed units of output.

Labor

The work performed by humans that is used in the production of goods and services.

Equivalent Units

Equivalent units, in managerial accounting, are a concept used in process costing that represents the amount of work done during a period in terms of fully completed units of output.